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Share Certificate laddering strategy

Typically you can receive higher crediting rates on a Share Certificate if you commit to leaving your money with the financial institution for a longer period of time. This lack of liquidity causes many people to choose shorter-term Share Certificates at the expense of receiving the higher dividend rates. Share Certificate laddering is a strategy that gives you the benefit of receiving the higher dividend crediting rates of longer term Share Certificates but still provide you with some liquidity. For example, rather than deposit $60,000 for a one-year period and renewing each year at a lower one-year rate, you could create a three-year ladder and put $20,000 in a one-year Share Certificate, $20,000 in a two-year Share Certificate and $20,000 in a three-year Share Certificate at the higher dividend rates. After the first year, you take the one-year Share Certificate and purchase a new three-year Share Certificate. After the second year, you take the initial two-year Share Certificate and purchase a new three-year Share Certificate, and do the same with the initial three-year Share Certificate. Starting in year four, you will have the three Share Certificates receiving the benefit of a three year rate but also have access to 1/3 of your money each year without penalty should you need it. Use this calculator to determine the additional dividends you could earn with a Share Certificate laddering strategy.

Share Certificate Information and Assumptions

Deposit amount ($)

Dividend compounding frequency

Number of years for analysis (1 to 5)

Marginal tax bracket (0% to 75%)

Share Certificate Dividend Rates

One year (0% to 12%)

Two year (if applicable) (0% to 12%)

Three year (if applicable) (0% to 12%)

Four year (if applicable) (0% to 12%)

Five year (if applicable) (0% to 12%)

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.